If you're considering estate planning in Wisconsin, you may have come across the term "revocable living trust." A revocable living trust is a legal document that can be used to manage your assets during your lifetime and distribute them after your death. It is a popular estate planning tool that offers several benefits, including avoiding probate and providing privacy. In this article, we will explore the primary purpose of a revocable living trust in Wisconsin.
Understanding Revocable Living Trusts in Wisconsin
A revocable living trust is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. The trust then becomes the legal owner of your assets, and you continue to manage and use them as you did before. You can revoke or amend the trust at any time during your lifetime, which makes it a flexible estate planning tool.
When you die, the assets in the trust are distributed according to the terms of the trust document. If the trust is properly funded, meaning all of your assets have been transferred to the trust, then your estate may be able to avoid the probate process. This can save time, money, and provide more privacy for your loved ones.
What is the Primary Purpose of a Revocable Living Trust in Wisconsin?
The primary purpose of a revocable living trust in Wisconsin is to provide a flexible and efficient way to manage and distribute assets after the trust creator's death. This type of trust allows the trust creator to maintain control over the trust assets while alive and able, and to make changes to the trust as circumstances change. It also allows assets to be distributed to beneficiaries outside of the probate process, which can save time and money for the beneficiaries. Additionally, a revocable living trust can provide privacy for the trust creator and beneficiaries, as the trust is not subject to public record, unlike a will.
Pros of a Revocable Living Trust in Wisconsin
There are distinct advantages to setting up a revocable living trust in Wisconsin, including:
Probate is a court-supervised process of distributing a person's assets after they pass away. This process can be time-consuming, expensive, and can be open to public scrutiny. If you set up a revocable living trust and properly fund it, your assets will not go through probate, saving your heirs time and money.
Probate court proceedings are a matter of public record, meaning anyone can access the information. This can lead to privacy concerns for some families. A revocable living trust, on the other hand, is a private document, and the distribution of assets is kept confidential.
A revocable living trust allows you to maintain control of your assets during your lifetime. You can manage and use your assets as you did before, and you can change the terms of the trust at any time.
Cons of a Revocable Living Trust in Wisconsin
There are some disadvantages to setting up a revocable living trust in Wisconsin, including:
Setting up a revocable living trust can be more expensive than a will. This is because a trust is a more complex legal document that requires ongoing management during your lifetime.
In order for a revocable living trust to work properly, all of your assets need to be transferred to the trust. This can be a time-consuming process, and some assets, like retirement accounts and life insurance policies, may not be able to be transferred to the trust.
A revocable living trust can be a valuable estate planning tool for Wisconsin residents who want to ensure that their assets are distributed according to their wishes after they pass away. By establishing a revocable living trust, individuals can avoid probate, maintain privacy, and potentially reduce their estate tax liability. However, it is important to work with a knowledgeable attorney or lawyer in Wisconsin who can help create and manage the trust. With proper planning and administration, a revocable living trust can provide peace of mind for individuals and their loved ones.
Contact a Revocable Living Trust Attorney in Wisconsin
If you are interested in creating a revocable living trust in Wisconsin, or have questions about estate planning, probate, or business law, contact Heritage Law Office at 414-253-8500 or send us a message. Our team is here to help you navigate the complexities of the legal system and achieve your goals.